The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Where I actually fundamentally disagree with you is that in the peer-to-peer mechanisms, there isn't anyone to vouch - by having skin in the game - the quality of the underlying projects. By having banks doing the lending and keeping the assets on their books, you do have that quality control. And as we know, this is a vital service.
Why can't everyone have skin in the game? God knows that this has been the default outcome of the current fiasco.
Bank capital is scarce, and a lot scarcer in fact than current window-dressing discloses. I have always thought that you are a long-standing proponent of the State's role in infrastructure ownership and development. Yet you are saying here - as I understand it - that it is for banks to provide the role of guarantor rather than end user producers and consumers collectively, backed by States.
I believe that the global markets in energy should be explicitly underpinned by producers and consumers collectively and backed explicitly by international government agreement. This could be achieved through the creation of 'International Clearing Unions', which would be global agreements (not organisations!) underpinning the creation, development and operation of productive energy assets.
I agree with you that quality control is a a vital service, and that banks could and should be providing it.
I just don't see why banks - rather than market participants generally - should put their capital at risk in order to achieve this. Although I do believe that the income that bankers receive in respect of the use of their 'Human Capital' should be performance related to avoid moral hazard.
"The future is already here -- it's just not very evenly distributed"
by Frank Schnittger - Feb 21 24 comments
by Cat - Feb 18 11 comments
by ATinNM - Feb 6 22 comments
by Oui - Feb 12 16 comments
by Oui - Jan 26 3 comments
by Oui - Feb 14 1 comment
by gmoke - Feb 13
by Frank Schnittger - Feb 5 10 comments
by Frank Schnittger - Feb 2124 comments
by Cat - Feb 1811 comments
by Oui - Feb 177 comments
by Oui - Feb 141 comment
by gmoke - Feb 13
by Oui - Feb 1216 comments
by Oui - Feb 12
by Oui - Feb 86 comments
by Oui - Feb 71 comment
by ATinNM - Feb 622 comments
by Frank Schnittger - Feb 510 comments
by Oui - Feb 42 comments
by Frank Schnittger - Feb 254 comments
by Cat - Feb 18 comments
by Oui - Feb 1
by Oui - Feb 129 comments
by Oui - Jan 302 comments
by Frank Schnittger - Jan 2936 comments
by Frank Schnittger - Jan 2811 comments
by Oui - Jan 263 comments